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The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,248,000 Less: Variable Expenses 811,200 Contribution Margin 436,800 Less: Fixed Expenses 300,000

The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,248,000 Less: Variable Expenses 811,200 Contribution Margin 436,800 Less: Fixed Expenses 300,000 Operating Income 136,800 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required to clearly answer all questions and show all work for full marks: a) What is the company's contribution margin ratio? b) What is the company's break-even in units? c) If sales increase by 100 units, by how much should operating income increase? d) What sales would the company have to achieve to attain a target operating income of $125,000? Round to nearest dollar. e) What is the company's margin of safety in dollars using original data? (round to nearest dollar) f) What is the company's degree of operating leverage? (round to two decimals) g) If the company sales decrease by 3%, what is the impact on operating income? Express answer as a percentage with two decimal places

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